Getting completely ripped off by cryptsy was a risk that all of cyptsy's customers walked into with their eyes wide open. At this point, you guys should work on accepting that it is extremely unlikely that anyone will get anything back. If you put thousands of dollars into a risky exchange like this and got burned, sure I feel bad for you. It's a real shame. Crypto suffers across the board everytime this kind of thing happens. With regard to each of Paul's victims, keep in mind that you are lying to yourself if you didn't know that losing all you coins wasn't a definite possible outcome. I liken this to banging a prostitute without a condom and then getting angry when you find out she gave you herpes. This is one instance where your greed, laziness, poor decision making, or a combination of these caught up with you and you paid the price.
Imagine this scenario: 3 neighbors loan a 4th neighbor collectively a chainsaw, a leaf blower, and a lawn mower. Unfortunately, the neighbor's home gets robbed and someone steals the lawn mower. Does that give the neighbor the right to sell his other neighbors' chainsaw and leaf blower, then split the proceeds between all 3? Of course not. So stop with that "they stole from all of us" bullshit. Only a handful of coins were stolen. The rest of the coins could have been fully returned to their rightful owners.
2 crimes occurred here. Someone hacker or insider stole BTC, Doge, LTC, whatever. Then Paul stole all the rest of his depositors coins after bizarrely and seemingly arbitrarily releasing several types of altcoins.
There was more than this. The "hacker" stole a large amount of coins over a year ago. The exchange should have shut down then and given back whatever was not stolen at that time. This didn't happen. When he tried to run the exchange without telling anyone, and lost other customers money... he and the craptsy crew committed that crime.
Because the exchange (as a company) stole customers money, they will liquidate all the assets involved to move the losses equally among investors. Your analogy about the chainsaw wont work because vern sold the chainsaw, leaf blower, the immersion blender and the neighbors dog.
Yes, anyone who lost coins is partially to blame for loosing them, as there were signs that this might happen. Now that it did happen, the laws in the US don't favor creditors by what type of assets (coins) were lost. They will sell everything and divide out the remainder (after the lawyers get the biggest chunk). The people who owned any of the coins that were not removed from the exchange will be in the same position.
right wrong or otherwise that's the way I see this playing out. If you are lucky, people will get change on the dollar.
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Please don't get me wrong. I am not wishing the holders of any coins to loose money. If as a developer you can reverse all the transactions that were given to cryptsy, and you can figure out how to make sure they are not coins that were traded, lost, stolen or otherwise then I say do it.
I don't know how you would be able to do so.
User deposits x amount of some coin. The user exchanges them for some other coin. Then those to another coin. Then back to the starting coin but they made 300 coins in the process... will you be able to track who is the righful owner of the coins without access to the books at cryptsy?
Do you reverse the initial deposit to cryptsy meaning the user lost the 300 coins they earned? What if they lost those 300 coins and 200 more. Reversing the transaction would mean you are taking them away from the person who earned them after deposit.
Do what you can to recover what you can, but I think these issues would make some people loose coins that are legitimately owned.
I don't know how the back end stuff works. That isnt my thing. Just my 2 cents worth on the idea... and my 2 cents are worth far less than an actual 2 cents...
